FIPB clears Satyam ADR

The Foreign Investment Promotion Board has given permission to Satyam Infoway to float American depository receipts of Rs 2.09 billion. It has also allowed Alcatel of France to buy out Modicorp's stake in a telecom equipment manufacturing joint venture.

These are among the 24 proposals cleared by the board. All the proposals cleared together amount to a foreign direct investment inflow of Rs 6.07 billion, FIPB sources say.

Satyam Infoway has been allowed to float 4,175,000 shares of Rs 10 each as ADRs at a premium of Rs 490 each, which would not exceed an equity increase of 37.97 per cent.

The company sets up public data network for electronic data interchange and provides Internet services.

The FIPB also allowed an US based venture banking firm, Warburg Pincus and Company, to pick up an additional 20 per cent stake in Sunil Mittal promoted Bharti Televentures for Rs 4.56 billion.

The firm already owns a 20 per cent stake in the Bharti Group company.

Of this additional 20 per cent, 16 per cent would come from Bharti Enterprises' shareholding and the remaining 4 per cent from foreign partner Telecom Italia's shareholding.

With this approval, Mittal's stake in the venture has been reduced from 80 per cent to 64 per cent.

Alcatel of France has been allowed to buy out its partner Modicorp's 51 per cent stake in Alcatel Modi Network Systems Limited for Rs 360 million. The company manufactures telecom equipment, including digital and cellular gear.